The IRS is reportedly ready to lay off thousands of workers Elon Musk’s Elon Musk aims to narrow down tax agencies

The IRS is reportedly on the verge of firing thousands of employees, a move that could seriously affect the agency’s operations during a critical tax season.

what happened: Reuters reported that in the coming days, the IRS will lay off a large number of workers, including probation workers, in the coming days, citing sources familiar with the matter.

The Office of Personnel Management, which oversees federal recruitment, has directed all agencies to terminate their probationary employees who are relatively new to their roles and do not have complete job protection.

Under the previous administration, the IRS’ exact layoffs expanded to 100,000 employees, but it has not been confirmed. This includes about 16,000 trial workers. These cuts will primarily affect trial employees who either reject prior acquisition offers or are impossible for ongoing tax seasons.

See also: Tesla’s $400 million armored Seberak trades in fire as short seller Jim Chanos questioned Elon Musk’s cuts on “waste government spending The role in “

“They tried to reduce the numbers across the board without analyzing their impact on operations,” a source told Reuters.

The IRS is currently managing the busy tax season and will be occupied in months ahead of the April 15 filing deadline, processing proceeds and refunds.

Why it matters: The layoffs are part of a broader effort led by the former president Donald Trump and Elon Musk’s The Ministry of Government Efficiency (DOGE) reorganized the federal government, which they claimed was already too swollen and inefficient.

This move comes after a series of major developments in the federal workforce in the United States. Just days before the IRS layoffs announced, a federal judge blocked President Trump’s plan to provide paid leave to 2,200 U.S. international development employees. This decision is seen as a major setback on Trump’s “America First” agenda.

Meanwhile, the Senator Mickey McConnell (R-Ky.) Also on his concerns about President Trump’s policy, warned of potential price increases and said Trump’s “proactive proposals have created lasting concerns about U.S. industry and workers.”

Read next:

Disclaimer: The content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo courtesy: Shutterstock